I would like to share with you a new Amazon fee item - Low Inventory Cost Coverage Fee, which is generally more than 5 sales per week,** If it is too small, this fee will be incurred Effective Date: April 1, 2024 Effective April 1, 2024, for standard-size products fulfilled through the Pan-European FBA (Pan-EU) program, the number of units in stock in Germany, France, Italy, and Spain** is less than 28 relative to the number of units shipped days, we will charge a low inventory cost coverage fee (European Consolidated Services Program).
When a seller's inventory level is low relative to the number of units shipped, we are not able to optimally distribute products across our fulfillment network, resulting in faster fulfillment and higher fulfillment costs.
A low inventory cost coverage fee (Pan-European Services Program) will only be charged if the historical inventory level of the product is less than 28 days relative to the historical demand (known as the historical days of supply). The Low Inventory Cost Coverage (Pan-European Plan) fee will only be charged if the historical days of long-term supply (last 90 days) and the historical days of short-term supply (last 30 days) are less than 28 days (4 weeks), otherwise sellers will not incur the fee.
If the short-term historical supply days are more than 28 days, but the long-term historical supply days are less than 28 days, the Low Inventory Cost Coverage Fee (Pan-European Services Program) will not be charged.
Low Inventory Cost Coverage (Pan-European Services Program) does not apply to the following products:
Professional sellers who are new to Pan-European (first 365 days after the activation date of the first Pan-European Services program).
New Pan-European Merchant FNSKU (first 180 days after the first Pan-European Program activation date).
Pan-European sellers in Germany, France, Italy, and Spain** who sell fewer than five units per week
Historical days of supply metrics will be calculated for seller FNSKUs by dividing the average number of units in inventory per day for Pan-European Services** over the long term (last 90 days) and short term (last 30 days) by the average number of units shipped per day. The indicator is updated weekly. The latest available historical days of supply will determine the rate for items shipped that week.
For all Pan-European shipments of eligible Pan-European offer units in Germany, France, Italy, and Spain**, we add the Low Inventory Cost Coverage (Pan-European Plan) to the FBA fulfillment fee if the historical days of supply are less than 28 days in both the long-term (last 90 days) and the short-term (last 30 days) historical days of supply.
The charges are as follows:
Embodiment: Inventory - under FBA inventory - view historical days of supply.
There is an opportunity to minimize or avoid paying a low inventory cost coverage fee by improving inventory levels in the near future (European Consolidated Services Program). You can improve your inventory levels by increasing your short-term (last 30 days) historical supply days to more than 28 days.
If the short-term historical supply of the product exceeds 28 days, there is no low inventory cost coverage fee (Pan-European Services Program). You can also avoid this charge by managing the long-term (last 90 days) historical days of supply of your products. Go to FBA inventory to identify products with low inventory levels and review the number of products recommended for shipment to Amazon.